2 Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour ook D int nt Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $ 20,900 $ 15.00 $ 7.20 $ 2,710 $ 0.60 $ 5,740 $ 1.70 $ 4,650 $ 3,880 $ 0.60 For example, wages,and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hour in May but actually worked 2,400 repair-hours. The company expects its sales to be $48.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero

2 Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair provided the following data concerning its costs: Fixed Cost Cost per per Month Repair-Hour ook D int nt Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses $ 20,900 $ 15.00 $ 7.20 $ 2,710 $ 0.60 $ 5,740 $ 1.70 $ 4,650 $ 3,880 $ 0.60 For example, wages,and salaries should be $20,900 plus $15.00 per repair-hour. The company expected to work 2,500 repair-hour in May but actually worked 2,400 repair-hours. The company expects its sales to be $48.00 per repair-hour. Required: Compute the company's activity variances for May. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero

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Description: None 2Exercise 9-7 (Algo) Flexible Budgets and Activity Variances [LO9-1, LO9-2]Jake's Roof Repair provided the following data concerning its costs:Fixed Cost Cost perper Month Repair-Hour$ 20,900Wages and salariesParts and suppliesEquipment deprecia

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 8P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of...

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Exercise 9-7 (Static) Flexible Budgets and Activity Variances [LO9-1, LO9-2] Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses per Month Repair-Hour $ 16.30 $8.60 $ 0.40 $ 1.70 $ 23,200 $ 1,600 $ 6,400 $ 3,480 $ 4,500 Rent Administrative expenses $ 0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair-hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour. ces Required: Compute the company's activity variances for May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair ....*.·.... RE ..... ........
Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level and the actual operating results listed below for the 31,000-unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 31,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of 6 per unit of fixed overhead and 4 per unit of variable overhead. Normal capacity is 10,000 units. In one month there was a favorable flexible budget variance of 2,500. Actual overhead for the month was 110,000 and actual units produced were 13,125. Based on this information, determine the amount of the budgeted overhead for the actual level of production.
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
4. Use the following terms in preparing the budget: Insurance Maintenance Utilities Depreciation Expense Sales Commissions Depreciation Indirect Material Maintenance Salaries Indirect Labor Supervisory Salaries Sales Salaries Insurance Expense Spree Party Lights overhead expenses are: Indirect material, pounds per unit 0.25 Indirect material, cost per pound $ 2 Indirect labor hours 1 Indirect labor rate per hour $16.50 Variable maintenance per unit $0.75 Variable utilities per unit $0.20 Supervisor salaries $10,000 Maintenance salaries $9,000 Insurance $3,000 Depreciation $1,500 PLEASE NOTE: All dollar amounts are rounded to whole dollars and shown…
EXERCISE 9-7 Flexible Budgets and Activity Variances LO9-1, LO9-2 Jake's Roof Repair has provided the following data concerning its costs: Fixed Cost Cost per Repair-Hour per Month Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent $23,200 $16.30 $8.60 $0.40 $1.70 $1,600 $6,400 $3,480 Administrative expenses. $4,500 $0.80 For example, wages and salaries should be $23,200 plus $16.30 per repair hour. The company expected to work 2,800 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $44.50 per repair-hour.
TB MC Qu. 16-41 (Algo) James Manufacturing has the following... James Manufacturing has the following information available for July: Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 15,000 ? 2,000 U ? Sales revenue ? $ 16,000 F ? ? ? Less: Variable manufacturing costs $ 92,750 $ 104,000 ? $ 145,000 Variable marketing and administrative ? $ 2,750 U ? $ 3,500 F $ 50,000 Contribution margin $ 69,000 ? ? $ 8,000 U ? What was James’s flexible budget sales revenue for July? Multiple Choice $161,000 $195,000 $211,000 $221,000
Given the following information, determine the activity rate (rounded to the nearest cent) for setups. Activity Total Activity-Base Usage Budgeted Activity Cost Setups 11,000 $58,100 Inspections 25,200 $147,200 Assembly (dlh) 72,000 $375,700 a. $5.22 O b. $5.28 c. $5.84 O d. $5.37
The Mobile Phone Shop Actual-to-Budget Comparison For the month ended May 31, 2021 Actual Budget Budget Variance Repairs processed during the month 3,653 2,500 500 F Variable Costs: Cell phone testing equipment 7,375 $ 9,430 $ (2,055) U Cell phone repair parts 18,220 16,500 1,720 U Direct labor for repair technicians 22,785 25,900 (3,115) U Shipment costs to return repairs to customers 4,790 5,650 (860) F Total variable costs 53,170 57,480 (4,310) U Fixed Costs: Store manager and supervisor salaries 25,000 27,900 $ (2,900) F Depreciation expense on store fixtures 5,850 5,450 400 U Store lease and rental expense 28,490 26,000 2,490 U Utilities, telephone and internet expense 845 700 145 U Total fixed costs 60,185 60,050 135 U Total Expenses $113,355 $117,530 $ (4,175) U…
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Static Actual Budget Budget Variance Machine-hours 39,920 36,600 Direct labour wages $ 86,100 $ 84,180 $1,920 U Supplies Maintenance 24,220 21,960 2,260 U 145,300 142,160 3,140 U Utilities 17.620 16,960 660 U Supervision Depreciation Total 41,200 41,200 83,200 83,200 $397,640 $389,660 $ 7,980 U